Lake Victoria Mining Company Inc. Signs Four Option Agreements With Otterburn Ventures, Inc.; With Aggressive Drill Program Underway
Lake Victoria Mining Company, Inc. (OTCBB:LVCA) ( “Lake Victoria”) is pleased to announce that Lake Victoria and Otterburn Ventures Inc. (CNSX:OTB)( “Otterburn”) have entered into four option agreements (collectively the “ Agreements”), pursuant to which Lake Victoria has granted Otterburn the right to acquire up to an undivided 70% interest (the “ Options”) in and to certain primary mining licenses and prospecting licenses owned by Lake Victoria known as the Singida Gold Project, North Mara Gold Project, Kalemela Gold Project and Geita Gold Project (collectively the “Properties”).
The Properties are located in the gold producing Lake Victoria Greenstone Belt in Tanzania, East Africa and cover approximately 623 square kilometers. All are situated in highly prospective geological environments for Archaean-hosted gold mineralization and have been explored to degrees varying from surface prospecting, geochemistry and geophysics to programs of significant drilling. In particular, the Singida gold prospect has undergone significant reverse circulation drilling by Lake Victoria and has resulted in the definition of numerous gold-bearing targets for follow-up drilling, currently underway.
Tanzania is Africa’s third largest gold producer. Well-known gold mining companies with producing gold mines in Tanzania include Barrick (with gold mines at North Mara, Bulyanhulu, Tulawaka and Buzwagi) and Anglo Gold (which operates the Geita Mine).
Singida Gold ProjectThe Singida Gold Project consists of 60 primary mining licenses totaling 4.71 square kilometers located 90 kilometers south-southeast of Singida, Tanzania. Notable results from the October 2010, drill program included: 13.91 g/t Au over 4 meters; 16.80g/t Au over 2 meters; 23.6g/t Au over 1 meter. Lake Victoria has commenced, in 2011, the second round of Reverse Circulation drilling at its Singida Gold Project in Tanzania. This program follows the initial +6000 meter drill program undertaken in October 2010 in which five exploration targets, defined by artisanal gold mines and prospects, were tested by reverse circulation drilling along the NW-SE trending Singida shear zone along a strike length of over 5 kilometers. Under the terms of the Singida Agreement, Otterburn may earn an initial undivided 51% interest in the Singida Gold Project by paying to Lake Victoria, an aggregate of US$400,770, with US$25,000 payable on May 13, 2011 (the “ Singida Deposit”) an additional US$275,770 payable by May 20, 2011, an additional US$50,000 payable on May 20, 2012 and an additional US$50,000 payable on May 20, 2013. Otterburn has also agreed to issue to Lake Victoria an aggregate of 2,200,000 common shares of Otterburn, with 1,100,000 common shares issuable on May 20, 2011, an additional 550,000 common shares on May 20, 2012 and an additional 550,000 common shares issuable on May 20, 2013. Otterburn has also agreed to fund aggregate expenditures of US$4,500,000 on the Singida Gold Project, with US$750,000 to be funded by October 17, 2011, an additional US$750,000 to be funded by May 20, 2012, an additional US$1,500,000 to be funded by May 20, 2013 and an additional US$1,500,000 to be funded by May 20, 2014. Otterburn has also agreed to complete a preliminary economic assessment on the Singida Gold Project and all costs associated with such assessment will be included in the above work expenditures. Otterburn will also pay US$646,030 on August 9, 2011 and an additional US$4,247,100 on August 2, 2013 to certain underlying owners of the primary mining licenses. Upon the completion of the above payments, issuances and funding, Otterburn will hold an undivided 51% interest in the Singida Gold Project. Under the terms of the Singida Agreement, Otterburn then may earn an additional undivided 19% interest (for a total undivided interest of 70%) in the Singida Gold Project by issuing to Lake Victoria 1,000,000 common shares of Otterburn on May 20, 2017 and funding aggregate expenditures of US$750,000 on the Singida Gold Project, with US$250,000 to be funded by May 20, 2015, an additional US$250,000 to be funded by May 20, 2016 and an additional $US250,000 to be funded by May 20, 2017. Otterburn has also agreed to complete a pre-feasibility report on the Singida Gold Project and all costs associated with such assessment will not be included in the above work expenditures. Upon the completion of the above payments, issuances and funding, Otterburn will hold an undivided 70% interest in the Singida Gold Project.
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